US wheat futures firmed on Friday on better-than-expected export data and short-covering at year's end, analysts said, but the market was poised for an annual decline of about 13 percent. Corn was set to finish the year down about 2 percent after the biggest-ever US harvest boosted stockpiles. Both corn and wheat are heading for their fourth straight annual slide.
As of 12:22 pm CST (1822 GMT), Chicago Board of Trade March wheat was up 2 cents at $4.06-3/4 per bushel. March corn was up 1/2 cent at $3.50-1/4 a bushel. March soyabeans were down 1/2 cent at $10.12-1/4 a bushel. Wheat rose on the final trading day of the year, lifted by a setback in the dollar, which in theory makes US grains more competitive, and strong weekly exports.
The US Department of Agriculture reported export sales of old-crop wheat in the latest week at 568,000 tonnes, above a range of trade expectations for 200,000 to 500,000 tonnes. "Wheat is biggest gainer this week. US sales were at the upper end of estimates," said Ed Duggan, senior risk manager at Top Third Ag Marketing in Chicago.
However, large US and global grain supplies continue to hang over the wheat and corn markets, limiting rallies. The USDA and the International Grains Council have estimated record world wheat production in 2016/17.
CBOT soyabeans were mostly lower on the day but on track to rise about 15 percent for 2016, their first yearly climb since 2012. The advance reflects robust US soya exports and wider strength in oilseed markets that have countered pressure from big harvests and a rising dollar. Soyabeans also have drawn support from other oilseed markets, including Malaysian palm oil futures, which rose 25 percent over 2016 to notch up their biggest annual gain since 2010.
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